25/05/2026
Quality investing is a distinct investment style that focuses on owning businesses with durable competitive advantages, consistent profitability, and strong balance sheets, rather than just a general term for a “good company”. Unlike value investing, which seeks underpriced shares relative to business fundamentals, or growth investing, which seeks companies that are expanding rapidly, quality investing emphasises stability and resilience. The view is that companies with high returns on capital and predictable earnings will compound wealth steadily over time.
For much of the past decade, quality investing felt like a complete answer. Low interest rates and scarce growth rewarded dependable businesses and made portfolios built around quality feel reassuring. As conditions change, some of those assumptions are now being tested.
In this article, we explore how quality portfolios arrived here, why diversification by name is not always diversification by outcome, and what investors should think about when good businesses start moving together.
At K2 Capital, we build robust portfolios for clients by diversifying across investment styles as well as asset classes, ensuring that wealth is protected and grown no matter how market conditions shift.
Read the full article here:https://www.k2capital.co.za/s/Qualitys-cul-de-sac-when-great-businesses-move-together-1.pdf